Market Challenges And Opportunities

Global Electric Truck Market Drivers:

Rise in government initiatives promoting e-mobility to boost the market growth

With growing government regulations, vehicle manufacturers are under pressure to cut down carbon emission caused by diesel fuel combustion. To address the issue of GHG emissions, manufacturers are investing in development of electric trucks. Governments around the world are offering incentives for this, with schemes and programs to support electric truck manufacturing. Moreover, several governments are also offering incentives and subsidies on purchase of electric vehicles. Such initiatives from governments of countries across the world are promoting e-mobility. This in turn is anticipated to fuel growth of the global electric truck market over the forecast period.

Stringent regulations around emissions from fossil-fuel powered vehicles to augment the market growth

Environmental concerns are growing all over the world due to which, several environmental agencies and governments of countries are imposing stringent regulations and laws around emissions in order to cut down vehicular emissions. Most of these regulations target reducing nitrogen oxides and carbon dioxide in air. For instance, the federal and state governments in the U.S. are taking initiatives toward cleaner transportation owing to the high amounts of GHS emission from vehicles. The California Air Resources Board announced to adopt heavy-duty Low NOx Omnibus Regulations, which aim at achieving 90% reduction in current emissions of nitrogen oxide by 2027. Such regulations are likely to drive adoption of electric trucks, which is further expected to boost the market growth in the coming future.

Global Electric Truck Market Opportunities:

Growing demand from logistics sector is projected to create promising growth opportunities in the global electric truck market over the forecast period. Due to growing demand for green transport around the world, specifically in the freight transportation industry responsible for higher carbon emissions, the reduction in vehicular emission is increasing with time. Along with this, several manufacturers are replacing commercial diesel vehicles with electric vehicles. The demand for electric trucks in logistics industry is growing significantly, as the industry is major contributor to the carbon emissions. Thus, this in turn is likely to create growth opportunities in the market.

Increasing technological advancements in batteries is anticipated to offer lucrative opportunities in the global electric truck market during the forecast period. To improve charging capabilities and driving range in electric trucks market players are increasingly investing in advancement of battery technology in order to increase efficiency of electric trucks in long-haul operations. This is further creating lucrative environment for growth opportunities in the global electric truck market over the forecast period.

Global Electric Truck Market Restraints:

Lack of charging infrastructures to limit growth of the market

With increasing environmental concerns, governments of several countries are promoting adoption of EVs for commercial applications. However, many regions lack infrastructure for charging electric trucks. For instance, countries such as India are imposing initiatives to increase electric vehicles on road, however, due to inadequate EV charging infrastructure in the country, the adoption of electric vehicles is restricted. This factor in turn is expected to hamper growth of the global electric truck market over the forecast period.

High cost of electric trucks to hinder the market growth

Electric vehicles offer various benefits over traditional vehicles. However, these vehicles are expensive when compared to conventional vehicles. The cost battery used in electric vehicle determines the overall cost of an electric vehicle. Moreover, requirement of expensive manufacturing process and use of high cost raw materials also add into the cost of electric vehicles. This factor further creates uncertainty in adoption of EVs. Thus, the high cost of electric trucks is expected to hamper growth of the global electric truck market over the forecast period. However, increasing research and development activities to reduce the high cost of these vehicles is likely to aid in the market growth.

Global Electric Truck Market Trends: